Tag Archives: RVP

Glossary of Arbonne Terms

Posted by on November 4, 2009 No comments

The Glossary of Arbonne Terms is a collection of terms used by Arbonne Consultants in the field or terms that are part of the communications from Arbonne  Corporate.

Activity: The process of sharing the Arbonne products and/or business with another person. This process is initiated in a in person conversation or more often by a phone call. This process of activity continues with a One-on-One or a Group Presentation where the product line and business opportunity are presented.

Area Manager or AM: AM is the second management level in Arbonne. To qualify as an AM a Consultant must maintain $8,000 in retail volume in their Area each month. The AM level has a very powerful additional feature. When a Consultant is at Area Manager or above, their business is Will-able. This is powerful peace of mind and is just one of the many features in Arbonne and the Arbonne Compensation Plan that set Arbonne the company apart from it's competitors.

Botanical Glossary: The Botanical Glossary is a listing of the ingredients use in Arbonne products. This list includes herbal and botanical extracts, oils, fragrances and vitamins. Click here to view the Arbonne Botanical Glossary.

Business Building System: Any of a number of methods used to build an Arbonne business. Examples would be One-on-One's, Group Presentations also called Parties.

Client: The term Client in Arbonne has several different meanings. (Also see Retail Client)

  1. Some use the term "Client" only to refer to those who are not a Consultant or Preferred Client and who then purchase the product at full retail.
  2. It is also used to refer to anyone who uses the product whether this be a Consultant, Preferred Client or Client.

Consultant: A Consultant is a person who has signed up to do the Arbonne Business. There are two ways to become a Consultant:

  1. Pay the sign up fee of $109 (US) and then maintain minimal levels of sales volume and sponsoring in order to maintain this status.
  2. Meet certain requirements in sales volume and sponsoring to move from Preferred Client to Consultant.

Debt Free Company: A statement often used by Arbonne Consultants during presentations and in correspondence is "Arbonne is a debt free company". This comment originates during the time when Peter Mørck owned the company and during much of his tenure with the company it was in fact true. But it is no longer true. Harvest Partners took over Arbonne several years ago during the time period when Arbonne was averaging 100% growth each year. They were instrumental in supporting the Results Approach which caused sales to balloon past the average 100% per year to 164%. But due to weaknesses in the Results Approach there was a corresponding retraction. This retraction was so sever and rapid; and Harvest Partners, not familiar with network marketing, attempeted to implement corporate strategies in the field that compounded the situation; and in addition it appears Harvest Partners siphoned off so much capital from Arbonne assuming this growth would continue; that they could not recover. As a result, Arbonne is no longer debt free. 

Direct Upline: When a Consultant signs up with Arbonne their sponsor is their "Direct Upline."

District Manager or DM: DM is the first management level in Arbonne. To qualify as a DM a Consultant must maintain $2,500 in retail volume in their District each month.

Downline: Anyone a Consultant directly sponsors into Arbonne this would be part of their Downline. And anyone that is sponsored by anyone in a Consultant Downline also is part of this Consultant's Downline. Although Downline is used it is more commonly referred to as Successline as this is a more positive term.

Dr. Charles King: Dr. Charles King received his doctorate in business administration from Harvard and is currently a professor of marketing at the University of Illinois at Chicago. He is involved in extensive, ongoing research on network marketing and distributor operations. Dr. Charles King is referenced as the third party expert in the Arbonne Opportunity Presentation to provide credibility to the presentation. He lives in Wheaton, Illinois. Books & CD's by Dr. Charles King:

  • "The New Professionals – The Rise of Network Marketing As the Next Major Profession"
  • "Brilliant Compensation" 5 CD Pack

Group Presentation: A business building system used by many network marketing companies. In Arbonne this is usually done through a person known as "the hostess". This person host the presentation in their home. The advantage of the Group Presentation is it increases the quantity of person a Consultant is presenting the Arbonne products to.

National Vice President – NVP: The fourth management level in Arbonne after District, Area and Region. A Consultant must maintain a monthly volume of $160,000 in her entire Nation to be a National Vice President. There are numerous benefits at the NVP level.

  • $1,000 car allowance
  • NVP trip to Hawaii each year. Arbonne pays for the Consultant and the Spouse. Airfare and lodging are covered for both.
  • Life Insurance
  • Business is Will-able

One-on-One Presentation: A business building system in Arbonne that is done one person at a time. This may take on many forms from a Consultant who meets a person in a public location like Starbucks, to a by appointment only business where the products are shared with a client while other activities are taking place. An example would be a hair stylist who shares Arbonne with a client as they style their hair. One-on-One should not be confused with the Results Approach which is one of many One-on-One systems.

Preferred Client: Beginning January of 2009 Arbonne added a new designation called Preferred Client. When a person signs up as a Preferred Client for $29 (US) they receive a 20% discount on all products for a year. At the end of one year they may renew $15 to maintain their Preferred Client status for another year. Preferred Clients also eligible for special offers.

Presentation: Any activity where the Arbonne story, product and/or business opportunity are presented to one or more persons.

Regional Vice President – RVP: The third management level in Arbonne after District and Area. A Consultant must maintain a monthly volume of $36,000 in her entire Region to be a Regional Vice President. It is at the Region Level that a Consultant may receive $800 a month to go towards a white Mercedes-Benz. Criteria to receive the car are

  1. $36,000 in retail volume in the Consultant Region
  2. Proof of lease or purchase of a new or used white Mercedes-Benz of any model.

Once Arbonne has proof of purchase or lease the Consultant receives an $800 car bonus each month as long as they maintain the minimum retail volume of $36,000.

Results Approach: A business building system in Arbonne that is done one person at a time. The difference between the Results Approach and a One-on-One is the traditional Results Approach uses a full size set of RE9. The product is dropped off in the gold bag with instructions as to how to use the product. After a few days use the Consultant returns to pick up the product and interviews the client as to the effectiveness of the product.

Results Kit: Usually a set of RE9 that is placed in an Arbonne gold bag. Result Kits are dropped off to prospective clients so they can use the product. This method was introduced to Arbonne by Andy Inman. He originally called it the "Puppy Dog" System. The RE9 was like a puppy dog that you fall in love with and don't want to give up. Arbonne subsequently changed the name to Results Approach as the term "Puppy Dog" was confusing to some people in light of Arbonne guarantee that they do not test on animals and they do not use animal products or by-products in the formulation.

Retail Client: This refers to anyone who purchases the product at full retail. This would not include Consultants or Preferred Clients. (Also see Client)

RSVP – Right Start Value Pack: RSVP is the abbreviation for the Right Start Value Pack. This is a half price offer available in a Consultant's start month and the following month. A Consultant is also eligible for a RSVP in their renewal month. Consultant's who sell an RSVP receive a $50 to $75 bonus.

Sponsor: The Consultant that sponsored you into Arbonne. The Consultant you are directly signed up under.

Successline: Anyone a Consultant directly sponsors into Arbonne this would be part of their Successline. And anyone that is sponsored by anyone in a Consultant Successline also is part of this Consultant's Successline. The term Downline is also sometimes used.

System of Success: A process or method that has been battle tested in the real world and has been proven to be successful. The measure of this success is determined by how many use it to become successful, how successful they become and whether they can maintain this success over an extended period of time. A true Sy;stem of Success is also one that is duplicatible. This means it is not dependent upon a specialized skill set but can be used by the average person and with success.

Upline: When a Consultant signs up with Arbonne their sponsor is their "Direct Upline." Their Direct Upline and all those above them would be considered a Consultant's Upline.

WebStats: WebStats is an online web tool available to Consultants (Business Builders) which allows them to track sales and sponsoring. It also provides a Consultant with Contact information on all Consultants, Preferred Clients and Retail Clients in their network. WebStats is made available to all Consultants at no additional charge.

© 2009 – 2010, VoiceWind. . .Greg Loveless. All rights reserved.

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Arbonne Urban Myth? The Results Approach Caused Arbonne’s Unprecedented Growth – Really?

Posted by on October 29, 2009 No comments

They say if you repeat any idea long enough, people will think it is true whether it is or not.

There are many urban myths about Arbonne but the one that is the most curious is this:

The introduction of the Results Approach in 2005 was the catalyst that propelled the company to its unprecedented growth and the field to unprecedented promotion levels from 2005 to 2007.

As a Coach and Trainer of Premeire Elite Athletes, I never base my strategy on anecdotal evidence. I always know the numbers. So what do the numbers say about the impact of the Results Approach on Arbonne’s growth over the last seven or more years? Only by doing this can we determine if the above statement is true or another Arbonne Urban Myth.

First, to help clarify, we need a timeline.

  1. April 2003: Arbonne releases RE9 at NTC
  2. April 2004: According to Eye-On-Arbonne stories the Originator of the Results Approach System (known as ORAS) made a decision, at NTC 2004, to start building using the “Puppy Dog” or Results Approach.
  3. August 2004: ORAS hits RVP
  4. March 2005: ORAS hits NVP

Now lets look at the history of Arbonne’s growth before, during and after this time frame.

  1. 2001 – 13.5%
  2. 2002 – 70.6%
  3. 2003 – 111.8
  4. 2004 – 98.2%
  5. 2005 – 164%
  6. 2006 – 88.3

Here is what the stats reveal. Long before the Results Approach hit the streets Arbonne was enjoying record breaking growth. In 2002 it was 70.6% growth. In 2003 it was 111.8% growth. And although the Results Approach was being used by ORAS in 2004, it was not a company wide system until late in  2005. So even the growth of 98.2% in 2004 cannot be attributed to the Results Approach. This is nearly 100% average growth each year for three years before the Results Approach was widely used in Arbonne.

Even the 164% growth in 2005 cannot be attributed totally to the Results Approach. Since the other business building systems that were used prior to the Results Approach were yeilding approximately 100% growth each year for three years, it is logical to conclude that at least 100% of the 164% was the result of business building systems other than the Results Approach.

And what happen in 2006 after the Results Approach had some time to cycle through? Arbonne had a sudden drop from 164% back to 88.3% growth. If the Results Approach was really the cause of Arbonne’s unprecedented growth, then as it continued to be accepted and utilized by a larger percentage of the Consultants, Arbonne should have experienced a corresponding increase in growth. But Arbonne did not. Why? It has to do with “The Balloon Effect” and the “Mathematics of Weakness“.

Our conclusion: The statement “The Results Approach was the cause of Arbonne’s unprecedented growth” is not true but is an Arbonne Urban Myth!

© copyright 2009 VoiceWind & Greg Loveless

© 2009, VoiceWind. . .Greg Loveless. All rights reserved.

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Results Approach Temporary Balloon Effect on Existing Networks

Posted by on October 21, 2009 No comments

The Balloon Effect Defined:

On numerous occasions I have had discussions with an RVP or NVP who decided to change from One-on-One, Party or Group Presentation System to the Results Approach System. When I ask if it worked they will say something like, “We saw an immediate impact on our numbers up and down the network. Those who were close to qualifying for the next level finally got there. It was amazing.”

When I ask, “How much of the volume was potential (from Results Kits) and how much was actual,” there is a blank look or a question as to what I mean. This is evidence that this person did not understand the balloon effect of Results Kits on an existing network.

Calculating the Balloon Effect on Existing Network:

What is the Balloon Effect? Say we have an RVP who has three Area Managers who each have three District Managers. One Area Manager is doing $30,000 another $25,000 and the third $20,000 each month. This RVP also has three District Managers direct to her. One is doing $8,000 another $6,000 and the third $4,000 each month. Adding in the volume from her central district we get a total monthly volume of $120,000. The network would look something like this.

RVP Network Tree

RVP Network Tree

In this network there are three AM’s and 9 DM’s under them and three DM’s direct to the RVP for a total of 15 business builders. Now let’s make a conservative assumption that each of these business builders has on average one business builder at the Consultant level. That would give this network a total of 30 active business builders.

This RVP decides her team is going to do the Results Approach, so all the Business Builders do $2,500 purchase of Results Kits. That’s $2,500 times 30 or $75,000 dollars of an increase to the previous month’s volume. This pushes the RVP’s volume from $120,000 to $195,000 in one month and into qualification for NVP.  Observing this the RVP believes the Results Approach works. But this is not correct. You see the entire $75,000 generated from Results Kits is all “potential consumable volume” not “actual consumable volume”. Whatever portion of the Results Kits do not get converted into actual consumable volume, will cause the RVP’s volume to drop by that amount the following month or at some point.

Down Turn of Balloon Effect Impacts Residual Income:

In addition to the down turn from the potential Results Kits that were not moved, there is another impact. Not only will her volume drop by the portion of volume that remains potential, but the potential volume will have to be consumed before residual income will kick back in. So it has a negative impact on volume and residual income for an extended period of time.

The combination of these two is what I call the “Balloon Effect”. The purchase of the Kit’s by existing Business Builders balloons the volume and in some cases pushes the Consultant to the next management level. But whatever the amount of potential consumable volume that is not converted to actual consumable volume will have to flush out of the system.

It is true that the potential volume in these Results Kits could be converted to actual consumable volume. But the only way to do this is to book appointments, which, it has been proven, can be done without the Results Kits.

Some Consultants believe what I have described will not happen to them. They will keep the string going. Well that may be so, but even when you keep the string going, if you do not convert the Results Kits from potential consumable volume to actual consumable volume you will still lose because of the protections built into the Arbonne Compensation Plan. We will deal with that next in “The Mathematics of Weakness”.

All posts regarding the Arbonne Results Approach Analysis

© copyright 2009 VoiceWind & Greg Loveless

© 2009, VoiceWind. . .Greg Loveless. All rights reserved.

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Failure Rate in the Arbonne Results Approach

Posted by on October 20, 2009 No comments

Results Approach Failure Rate:

In the Results Approach System when you have a business builder she will place the standard Results Approach recommended $2,500 order. At the time of purchase this is not consumable volume but business builder volume or potential consumable volume. Now some will say, “But I or they will move it.” Are you sure? What do the numbers say? What do the statistics reveal about the percentage of Kits that are moved as compared to those Kits that are not moved? You can’t say with confidence that they will move it unless you know the numbers!

I have sat through hundreds of Arbonne Opportunity meetings and trainings and I often hear it stated that only three percent of the population will do what is necessary, and do what is necessary long enough, to build a successful business. As a coach who works with elite athletes from age 8 to the collegiate level I know this to be true. So if this is true, then it is possible that a significant number of those who sign up to do the business will not do what is necessary and/or will not do what is necessary long enough to succeed. In other words, no matter how good their intentions are, some will not move the Results Kits from potential to actual consumable volume.

So what are the numbers? From the statistics we have collected on three NVP’s and three RVP’s the rate of failure ranges from 50% to as high as 80%. This should not be surprising if we accept the fact that only three percent of the population will do what is necessary to succeed.

But here is something that is surprising. Our research also found the following:

  1. The failure rate is higher among those who used the Results Approach System compared to the Group Presentation System.
  2. There is a correlation between the quantity of Results Approach Volume in a Network and the rate of failure in that network.

Cause of Failure in Results Approach Systems:

Why? What is going on? Very simply this – the more volume there is in Results Kits, the more volume you have that is “potential consumable volume”.  And the more “potential consumable volume” there is in a network, the greater quantity of volume there is that will be at risk of not being converted into “actual consumable volume”.

If this potential volume is not converted to actual consumable volume there is no possibility of reorders, which means there is no possibility of residual income.

In addition we found that the less consumable volume there is, the less residual income you have and thus the more volume you have that could be a one-time purchase. This scenario always increases the potential for failure in that portion of the network where it resides.

All posts regarding the Arbonne Results Approach Analysis

© copyright 2009 VoiceWind & Greg Loveless

© 2009, VoiceWind. . .Greg Loveless. All rights reserved.

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Author & Data in the Analysis of the Arbonne Results Approach

Posted by on October 20, 2009 No comments

The Background of the Author, the Data & the Analysis:

Greg Loveless is the Husband of Linda Loveless, Executive National Vice President and Arbonne Independent Consultant.

Linda owned and operated a design dress making business when in 1996 she started her Arbonne Business on a part time basis. Linda’s sponsor, Kim Hoffman, shared a sample pack with Linda. Linda fell in love with the product, shared the product with others or others asked what she was using. From this she started to receive what she calls “Thank you checks” from Arbonne. The biggest impact came in the form of Bonuses from RSVP (Right Start Value Packs). In fact Linda was asked to speak at an Arbonne Training Conference because she was number three in the entire company sponsoring people into Arbonne with an RSPV.

Linda built her business with One-on-Ones and sample packs. Over time she found business builders and through this duplication process she built a six figure income. Linda has over 100 NVP’s and RVP’s in her downline. Through a business tool provided by Arbonne to all Consultants called WebStats, Linda can see the activity of those in her downline. By analyzing this information we can see:

  1. What those who have been successful did and are doing to be successful.
  2. What those who were successful but are no longer successful did and did not do.
  3. What those who were never successful did and did not do.

The analysis is based on the following data:

  1. WebStats
  2. Arbonne’s Policey and Procedures
  3. DSA web site (DSA or The Direct Selling Association is the governing body to which Arbonne is a member)
  4. Trainings on Arbonne’s www.arbonneuniversity.com

All posts regarding the Arbonne Results Approach Analysis

© copyright 2009 VoiceWind & Greg Loveless

© 2009, VoiceWind. . .Greg Loveless. All rights reserved.

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